New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1887-03-07
MORRIS AND ESSEX CHARTER
THE QUESTION OF ITS REPEAL.

HE QULc llOI> OH AAS ~sH~ ~>~~~
IsroRY OF THE RoAD-How 1T ESCAPES TAAA'
TIoy-woRK FOR THE NEw-JERsEY LEGIsLAT-
URE.
IRON THE REGULAR CORRESPONDENT OF THE TRrBUNRI
TRENTON, N. j., March 6-The Legislature Will
have much serious and difficult work to- perform now
that the Senatorshp is out Of the way The dsorgan-
zng effect of the great struggle upon legislation eau
scarcely be exaggerated and it has continued from the
very beginning of the session. During the exciting
period bills were passed without scrutiny and defeated
without protest when under ordinary eli cumstances
precisely the opposite would have been taken
The approach OF spring and the thought OF early
poughng lightly turns the mind oil the rural gisa'o
toward fnal adjournment, but much remains to be
done that his yearnng will have TO 90 unsatished ior
time at least Chief among the measures which have
attracted public attention is the bill to repeal the
charter of the Morris and Essex Railroad Company,
now leased to tho Delaware, Lackawanna and
Western. 1t Is not denied that this measure is in
tended to force the company to alter its nubc policy
and that it il retaatory in it's scheme. The subject IA
one OF great State Importance and also OF vital interest,"
10 the and lessees OF the road 10 comprehehu
When the charter of the Morris aud ESSEX was
granted fifty years ago, clause was inserted by wnon
the company was to submit to taxation when II pad
dividend OF z per cent. money dividend to that
amount was never paid until eighteen years ago, when
the company passed into the hands OF the
During n period OF thirty wears, THEREFORE, the
company escaped oil taxat on. When the lease was
made clause was inserted TO the effect that the road
shuuld tax OF One-ba OF per cent upon us cost
value. The Lackawsnna paid this tax yearly to the
State part OF IT, but in 1s77 the right OF the State
to change the system was mooted and the case weni
before the courts. The New-Jersey Judges sustained
the State but IN a somewhat hurriedly argued case
before tho United States Supreme Court the claim that
the act giving the States consent to the lease omeh
an invioable contract was set up, and the court up
held il. As consequence tho company made no
change and has since paid IN the old way. In 1894
the new railroad tax net was passed and II was be-
eyei that the provisions OF the bill would cover the
Morris and Essex. The hone was also expressed thnt
the company would consider the Justice OF the new tax
act and voluntarily obey IT. ne synsaned
the contract and permitted the road to go tree MOI
only the interests OF the state at largo adversely
affected but municipality IN which the COMPANY
had property thus lost considerable addition to Tue
ratables, while all the other railroads found thehi-
selves paying tax to considerable sum while compel
tor escaped much more easily. Hence action TO lorce
the Morris and Essex Company TO consent to the tax
act OF 1884 under the penalty OF losing the stu more
valuable provisions OF the charter Ex-Governor
Bedle has tv ice appeared before the House OF Assem-
bly protest against the passage OF the BILL ana Will
probably his argument ills week lnforti-
natey for his cause he faces at the outset iong dis
like for the policy which has governed the road The
company unpopular partly Tor reasons which are
not unlam liar to New YORK people. and parity he
IT by occupying public streets. refusing 10
improve stations and neglectng precautions which
were deemed necessary. earned the enmty OF citizens
of many places along its route. The real narty IN
interest is the Delaware, Lsokawanna and Western
Railroad the company guaranteed the stockholders
their nteres: and would be Liable whether the charter
repealed or not
At this important iuncture the company is about TO
receive another b ow. Last spring Governor ALBEIT,
in special message called the attention OF the Legs
laturc certain notorious discrepancies IN the reports
OF the Morris and Essex and the State assessors were
directed to examine into the matter and mako report
at the neat The report has been prepared ana
will be sent i'll 70 the Legislature this eek 1t sustain-
the charges. These WERE In effect, that the company
from $50 to 1877 charged large amount of property
it had acquired TO the equipment account instead
of he cost OF road account, where 1t properly be-
a.. a...IA f.fn aft IN
pay one-half OF j per cent on cost and nothing on
equipment, and consequently oil that was placed IN
the latter account was 40 much IT, ed from tax IN
1877 the policy was changed ana the new property.
which properly belonged &c cost of road. was placed
there The property which had during eight or nine
years been put ~ as e9upln9h' wat' no"'Ncr per
10 ascertain how much OF the equipment was properly
Of road and TO get at these facts they first OBJ
tanned full statement from the company. then VEN
fed by expert In their own employ who was given
access TO the books. AMI final by personal survey
of the road by engineers and an examination OF all the
real estate owned 10y the company. The result Is that
of the $4,000. 900 claimed by the company n
equipment quite onehali is declared IN be properly
cost OF road" and therefore subject TO taxation nj
the OF one-hali OF per cent during all q period
the Discrepancy existed he amount was small IN
1860 but IL large within hive years. and now the
contend that the company owes the state IN
back taxes n sum estimated all tho way IRON
$500. 900 to 500 900 and over.
IL is notable that this examination was caused en-
tuely by the fact that the company opposed the TAX
act OF 1884, and thus made an examination OF back
taxes natural II not imperative. Coming at a tine
when the road being assa ed by the State in another
way the effect OF the assessors report the Legislat
ure Is likely TO be serious The remedy suggested TO
the company IA that fhoud accept TIE moderate pro-
visions OF the act OF 1884 under which other compa
mics operate.
This is one OF the many important questions which
the Legislature will have TO consider at this session
Numerous bills OF equal local though not general I'M
portance also demand attention. Among them IL
bill Tor the purchase OF water rights and the construC
ton of mains give Newark and jersey City better
supply OF water, aud A-semblyman Corbn's bill TO
apply the principles OF the Interstate Commerce act To
New Jersey will also be pressed.
A testimonial 10 Asscmblyman DOnOhue. the Labor
Representative who stood by his candidate 10 the last
in the Senatorial contest 10 suggested lie had the
spect of both parties.